Affiliate Marketing is now strongly developed that dictates the huge opportunities. In order to help you well equip knowledge and skills in this field, in this post I will talk about some common terms of affiliate marketing that you might regularly meet.
Affiliate, or Publisher, is defined as a person that uses affiliate marketing to earn money online, just like you and me. His job is to search for proper affiliate marketing projects, ask links from Vendors and then receive commission.
Advertiser, or Vendor, or Merchant, is a person who creates products and wants to advertise them through affiliate marketing by Affiliates. It either that or he/she has his/her own affiliate system and crew.
Affiliate Network, or Affiliate Marketplace, is where Intermediaries create bridges between Publishers and Advertisers. They work with Advertisers first to bring products into networks, then Publishers access to those networks to easily advertise.
For payment, networks collect money from Advertisers, then pay for Affiliaters. All Affiliate Networks have professional softwares to control data, check traffic, assure payments and solve any cheating. For example, Commission Junction (http://www.cj.com/) is a world-class Affiliate Network that is always on top.
Private Affiliate Programme
Some companies may have their own support softwares and human resources, so they open their Private Affiliate Programmes. There is no need to use Networks, you will work directly with them through Private Affiliate Programmes. Besides, Private Affiliate Programme usually pays high commission because the company does not have to work with a third-party, and you will receive better assistance from the company’s affiliate manager.
Take Vultr, for instance, it has its own Affiliate Programme and you will receive $10 per customer.
When you affiliate directly or via networks, you are provided an unique link, called Affiliate Link. When your visitors click this link and purchase products, or fill forms, register or do surveys, etc. this action will be counted and turned to commission for you.
You can lookt at the above picture, the section Share Your Link is my Affiliate Link of Vultr Affiliate Programme.
Some Affiliate Programmes have a special function that when you register an affiliate account, you will be given an ID, which is a sequence of numbers or characters, for your account. With this sequence, you can make affiliate links yourself for any products, by insert the ID to the link according to instruction of Affiliate Programme.
For example, 6847966 is my ID for Vultr’s Affiliate Programme.
Many advertiser companies have staffs that are specialized in supporting how to advertise a product, to inform about it or consulting other problems related to affiliate marketing. They are called Affiliate Managers.
You will receive Commission when a customer does an action through your Affiliate Link. Commission is different depends on different Affiliate Programme. It can be percentagewised or a particular amount of money.
Commission from Digital Products is higher than Physical Products. Because Digital Products do not need as many equipments as Physical Products. They are made primarily by intelligence. A product can be sold to loads of customers, meanwhile the necessary material for Physical Products causes the higher price of them. Then, the commission you receive is less.
All Vendors provide adequate product information, including sale commission amount. It is easier for you to choose products that you think they are suitable.
Physical Products are real and touchable, such as refrigerator, clothes, television, air conditioner, etc. As I said above, the commission of Physical Products is low, usually between 3% and 10%. But they are sold all year around, so you can probably obtain high commission by continuing to sell as may products as possible. And the potential affiliate marketing marketplace for Physical Products is Nichesite Amazon.
For example, kitchen utensils are Physical Products.
Digital Products can be used on computer for several purposes (study, business) like online courses, softwares, internet marketing, ebooks, etc.
This type of product is made once and sold to many customers, so the commission is very high that is from 30% to 50% or even 100%. Two noted ways for you to seek Digital Products are Product Launch and Clickbank.
For example, Bullet Response is an application that supports message marketing via chatbot feature of Facebook.
Promote Methods are forms of product advertising. Although affiliate marketing is to advertise other people’s products, you have to do with all your passion like they are yours.
There are so many ways of advertising, depends on products’ property. Physical Products with low commission so you should use the best money-saving ways (like SEO). For Digital Products, you can pay fee to run advertisements or something else, as long as you can create profit.
There are several Payment Methods that Affiliate Programme or Network will choose to pay commision, including which way to pay and when they pay. Usually, they will pay through Payoneer or Paypal.
Landing Page/Sale Page
Every affiliate links gather here, Landing Page or Sale Page. When a buyer clicks an affiliate link, it will directs him/her to a sale page. Some companies use A/B testing for their pages, so buyers might be led to different pages even if they click the same link.
(To be continued…)